Ethereum's (ETH) recent price movement hints at a potential rally despite ETH ETPs recording outflows. The recent price improvement follows the fourth Bitcoin halving and a suspected Justin Sun wallet purchasing large numbers of ETH.
Read more: Ethereum resumes consolidation after brief dip, buyback yield exceeds that of major S&P 500 companies
Ethereum began the week on a positive note following Bitcoin's successful halving. Here are today's market movers for the number one altcoin:
Did #JustinSun buy 127,388 $ETH($405.19M) since Apr 8?
— Lookonchain (@lookonchain) April 22, 2024
The wallet suspected of being #JustinSun has deposited 787M $USDT to #Binance on #Tron since Mar 31.
Also on Mar 31, a mysterious wallet was created on #Ethereum and withdrew $96.8M stablecoins from #Binance.
Is this a… pic.twitter.com/OcEovodUrc
Also read: Ethereum shows firm support at key level as its correlation with US indices increase
Have to assume Grayscale, but some other enterprising ETF issuer w/ deep enough pockets could view this as a basic marketing expense…
— Nate Geraci (@NateGeraci) April 21, 2024
Basically brand themself as “pro-crypto” & willing to go to bat for innovation.
Ethereum is showing signs of a potential upswing on Monday after a successful fourth Bitcoin halving on Friday. While ETH is still consolidating, it has posted similar movements to its April 5 to April 8 price pattern.
ETH/USDT 4-hour chart
ETH recorded a three-week high of $3,730 on April 8, following the move. As a result, ETH may see a brief rally, if it breaks the $3,279 resistance of April 15, especially if it rejects a downturn to move past the $3,300 key level. This thesis would be invalidated if ETH trades below the $2,914 support of April 17.
Read more: Ethereum declines as crypto market crash increases bearish sentiment
While much of the general consensus is that ETH would see an increase in the long term following a potential Bitcoin post-halving rally, market dynamics may be different this time.
This is mainly because key analysis from Glassnode and Coinbase suggests that this time, the reduction in Bitcoin issuance rate from the halving may not be strong enough to trigger a crypto market rally. However, a potential spot ETH ETF approval could ignite a rally.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.